understanding tally
TRANSCRIPT
Understanding Tally
How to Work in Tally
Automatically all ledgers,Profit and loss,
Balance sheet, Trial balance will be created
Pass those entries in Tally,
Think about Entries to be passedz
How to Pass Entries
ExpensesPurchases 600Freight 100 Salary 100 Profit 400Total 1200
IncomesSales 1000Interest 200
Total 1200
Profit and Loss Account
LiabilitiesCapital 1000Profit 400Loan 200Creditors 400Total 2000
AssetsFurniture 1000Debtor 600Cash 100Bank 300Total 2000
Balance Sheet
Golden Rules for Passing Entries• All Expenses Dr• All Incomes Cr• All Assets (Increase) Dr• All liabilities (Increase) Cr • All Assets (Decrease) Cr• All liabilities (Decrease) Dr
Pass Entries
Cash brought into business as Capital Rs 100000
Particulars Dr Cr
Cash A/c Dr 100000 To Capital A/c 100000
Golden Rules for Passing EntriesAll Expenses- DrAll Incomes –CrAll Assets (Increase)-DrAll liabilities (Increase)- CrAll Assets (Decrease)-CrAll liabilities (Decrease)-Dr
AssetsFurniture 1000Debtor 600Cash 100Bank 300Total 2000
Balance SheetLiabilitiesCapital 1000Profit 400Loan 200Creditors 400Total 2000
Pass Entries
Furniture purchased for Cash for Rs 10000 Particulars Dr CrFurniture A/c Dr 10000
To Cash A/c10000
Golden Rules for Passing EntriesAll Expenses- DrAll Incomes –CrAll Assets (Increase)-DrAll liabilities (Increase)- CrAll Assets (Decrease)-CrAll liabilities (Decrease)-Dr
LiabilitiesCapital 1000Profit 400Loan 200Creditors 400Total 2000
AssetsFurniture 1000Debtor 600Cash 100Bank 300Total 2000
Balance Sheet
Pass Entries
Cash deposited in Bank Account Rs 50000
Particulars Dr Cr• Bank A/c Dr 50000
To Cash A/c 50000
Golden Rules for Passing EntriesAll Expenses- DrAll Incomes –CrAll Assets (Increase)-DrAll liabilities (Increase)- CrAll Assets (Decrease)-CrAll liabilities (Decrease)-Dr
Liabilities Capital 1000Profit 400Loan 200Creditors 400Total 2000
AssetsFurniture 1000Debtor 600Cash 100Bank 300Total 2000
Balance Sheet
Pass Entries
Goods Purchased from ABC & Co Rs 10000
Particulars Dr Cr Purchases A/c Dr 10000
To ABC & Co A/c 10000
Amount Paid to ABC & Co by Cash 10000
Particulars Dr CrABC & Co A/c 10000
To Cash A/c 10000
Golden Rules for Passing EntriesAll Expenses- DrAll Incomes –CrAll Assets (Increase)-DrAll liabilities (Increase)- CrAll Assets (Decrease)-CrAll liabilities (Decrease)-Dr
ExpensesPurchases 600Freight 100 Salary 100 Profit 400Total 1200
IncomesSales 1000Interest 200
Total 1200
Profit and Loss Account
LiabilitiesSh Capital 1000Profit 400Loan 200Creditors 400Total 2000
AssetsFurniture 1000Debtor 600Cash 100Bank 200Total 2000
Pass Entries
Sales made to PQR & Co Rs 15000PQR & Co A/c Dr 15000
To Sales A/c 15000
Cheque Received from PQR & Co Rs 15000 deposited in Bank
Bank A/c Dr 15000 To PQR & Co A/c 15000
Golden Rules for Passing EntriesAll Expenses- DrAll Incomes –CrAll Assets (Increase)-DrAll liabilities (Increase)- CrAll Assets (Decrease)-CrAll liabilities (Decrease)-Dr
ExpensesPurchases 600Freight 100 Salary 100 Profit 400Total 1200
IncomesSales 1000Interest 200
Total 1200
Profit and Loss Account
LiabilitiesSh Capital 1000Profit 400Loan 200Creditors 400Total 2000
AssetsFurniture 1000Debtor 600Cash 100Bank 200Total 2000
Types of Entries in Tally
1. Receipt EntriesWhen Cash or Bank is debited
Cash Dr To Partyor Bank Dr To Party
2. Payment EntriesWhen Cash or Bank is credited
Party To CashOrParty To Bank
3. Contra EntriesWhen Cash is Debited and Bank is credited or vice versa
Cash Dr To Bank orBank Dr To Cash orSBI Bank Dr To ICICI Bank
Types of Entries in Tally
4. Purchase EntriesWhen Purchase A/c is debited
Purchase A/c Dr To Partyor Purchase
To Cash
5. Sales EntriesWhen Sales Account is credited
Party To SalesOrCash A/c Dr To Sales
6. Journal EntriesAll other type of entries passed in journal
For ExampleExpense Dr To Party
Determine type of entry1. Receipt EntriesWhen Cash or Bank is debited2. Payment EntriesWhen Cash or Bank is credited3. Contra EntriesWhen Cash is Debited and Bank is credited or vice versa4. Purchase EntriesWhen Purchase A/c is debited5. Sales EntriesWhen Sales Account is credited6. Journal EntriesAll other type of entries passed in journal
Cash A/c Dr 100000 To Capital A/c 100000
Receipt Entry as Cash is Debited
Furniture A/c Dr 10000 To Cash A/c 10000
Payment Entry as Cash is Credited
Determine type of entry1. Receipt EntriesWhen Cash or Bank is debited2. Payment EntriesWhen Cash or Bank is credited3. Contra EntriesWhen Cash is Debited and Bank is credited or vice versa4. Purchase EntriesWhen Purchase A/c is debited5. Sales EntriesWhen Sales Account is credited6. Journal EntriesAll other type of entries passed in journal
Bank A/c Dr 50000 To Cash A/c 50000
Contra EntryWhen Cash is Debited and Bank is credited or vice versa
Purchases A/c Dr 10000 To ABC & Co A/c 10000
Purchase Entry
Amount Paid to ABC & Co by Cash 10000
Particulars DrCrABC & Co A/c 10000
To Cash A/c 10000
Payment Entry as Cash is Credited
Determine type of entry1. Receipt EntriesWhen Cash or Bank is debited2. Payment EntriesWhen Cash or Bank is credited3. Contra EntriesWhen Cash is Debited and Bank is credited or vice versa4. Purchase EntriesWhen Purchase A/c is debited5. Sales EntriesWhen Sales Account is credited6. Journal EntriesAll other type of entries passed in journal
PQR & Co A/c Dr 15000 To Sales A/c 15000Sales Entry as Sales Account is Credited
Bank A/c Dr 15000
To PQR & Co A/c 15000
Receipt Entry as Bank is Credited